This is an appeal to the Utah State Tax
Commission from a decision of the Collection Division of the Utah State Tax
Commission (Respondent) to assess a $$$$$ late filing penalty on withholding
tax account No. XXXXX for the third and fourth quarters of XXXXX and the first
quarter of XXXXX.An informal hearing
was held on XXXXX, in the offices of the Utah State Tax Commission.David J. Angerhofer, Hearing Officer, heard
the matter for the Tax Commission.XXXXX represented the Petitioner.

Petitioner
stated that he opened the business on XXXXX.At the end of the second quarter XXXXX he came to the Tax Commission for
help in filing his sales and withholding tax forms.Petitioner stated that XXXXX, a Tax Commission agent, helped him
prepare his forms and told Petitioner that Petitioner did not need to file the
withholding tax form if no tax was due.Petitioner did not owe any withholding tax for the periods in
question.Petitioner stated that there
was no reason for him not to file since no tax was owed, other than the fact
that Petitioner relied upon the statement of XXXXX.XXXXX has been closed since XXXXX.

FINDINGS

Respondent properly assessed a $$$$$ late
filing penalty for each of the quarters in question since the returns were in
fact filed late.However, the Tax
Commission, in its discretion, hereby waives the penalty based on the
representation by the Tax Commission agent.

DECISION AND ORDER

Based on the foregoing, the Utah State Tax
Commission hereby grants Petitioner's request for waiver of penalty on
withholding tax account No. XXXXX for the third and fourth quarters of XXXXX
and the first quarter of XXXXX.

The
Collection Division of the Utah State Tax Commission is hereby ordered to
adjust its records in accordance with this decision.